KBH · Consumer discretionary(operative builders) · 10 years of annual accounts filed with the SEC · latest fiscal year ended 2025-11-30
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KB Home reported revenue of $6.2 billion in fiscal 2025, after growing 4.0% a year over the previous 9 years. Of the $3.2 billion its operations generated over 10 years, 52.1% went to buybacks and 11.8% to dividends; the share count fell 29.6%. On the accounting screens, it passes 3 of 6 Piotroski tests; 1 of the six cross-checks between its statements fires.
Revenue, fiscal 20256.2B+4.0% a year over 9 years
Operating margin—gross margin —
Return on invested capital—
Free cash flow after stock pay241.0M3.9% of revenue
Net debt ÷ EBITDA—net debt —
Piotroski F-score3/6tests of improvement passed
Is it growing?
Revenue and the operating income it turns into. Growth that does not reach operating income is growth bought with margin.
RevenueOperating income
02.0B4.0B6.0B8.0B
2017Revenue 4.4BOperating income 283.4M
2018Revenue 4.5BOperating income 345.7M
2018
2019Revenue 4.6B
2020Revenue 4.2B
2021Revenue 5.7B
2022Revenue 6.9B
2023Revenue 6.4B
2024Revenue 6.9B
2025Revenue 6.2B
2017201820182019202020212022202320242025
Compound growth a year
3 yrs
5 yrs
9 yrs
Revenue
-3.3%
+8.3%
+4.0%
Net income
-19.3%
+7.7%
+10.1%
Earnings per share
-12.2%
+14.5%
+14.5%
Free cash flow per share
+38.9%
+6.7%
—
Dividend per share
+19.0%
+19.6%
+30.9%
Shares
-8.1%
-5.9%
-3.8%
Falling shares are buybacks: each remaining share owns more of the company.
Does it earn more than its capital costs?
Margins say how much of each sale is kept; return on invested capital says how much the business earns on the money it needs to operate. Growth only creates value when that return is above the cost of the capital.
GrossOperatingNetFree cash flow
-5.0%0.0%5.0%10.0%15.0%20.0%
2017Operating 6.5%Net 4.1%
2018Operating 7.6%Net 3.7%Free cash flow 4.7%
2018
2019Net 5.9%Free cash flow 4.6%
2020Net 7.1%Free cash flow 6.7%
2021Net 9.9%Free cash flow -1.3%
2022Net 11.8%Free cash flow 2.0%
2023Net 9.2%Free cash flow 16.3%
2024Net 9.5%Free cash flow 4.7%
2025Net 6.9%Free cash flow 4.6%
2017201820182019202020212022202320242025
Return on invested capital
Economic profit
Needs a cost of capital, which comes from the valuation below.
Return on equity
11.0%
Return on assets
6.4%
Asset turnover
0.93×
Is the profit cash, and where does the cash go?
Net income is an accounting opinion; free cash flow is what was left in the bank after investing. Stock-based pay does not leave the bank — shareholders pay it through dilution — so it is shown taken off as well.
Net incomeFree cash flowAfter stock-based pay
-500.0M0500.0M1.0B1.5B
2017Net income 180.6M
2018Net income 170.4MFree cash flow 214.1MAfter stock-based pay 198.3M
2018
2019Net income 268.8MFree cash flow 210.6MAfter stock-based pay 192.3M
2020Net income 296.2MFree cash flow 281.8MAfter stock-based pay 260.3M
2021Net income 564.7MFree cash flow -76.7MAfter stock-based pay -105.6M
2022Net income 816.7MFree cash flow 138.2MAfter stock-based pay 108.7M
2023Net income 590.2MFree cash flow 1.0BAfter stock-based pay 1.0B
2024Net income 655.0MFree cash flow 323.4MAfter stock-based pay 288.9M
2025Net income 428.8MFree cash flow 287.3MAfter stock-based pay 241.0M
2017201820182019202020212022202320242025
Where 10 years of operating cash went, 2017–2025
3.2B generated by the business. Each band is its share of that total.
Reinvested in the business 9%284.5M
Acquisitions 0%0
Dividends 12%379.4M
Share buybacks 52%1.7B
Kept, or used to pay down debt 27%880.1M
Over the same years it paid 244.0M in stock. The share count fell 29.6%. 1.4B of the buybacks went beyond offsetting that dilution.
Per share
Earnings per shareFree cash flow per shareDividend per share
$-5.00$0.00$5.00$10.00$15.00
2017Earnings per share $1.84Dividend per share $0.09
2018Earnings per share $1.69Free cash flow per share $2.12Dividend per share $0.09
2018
2019Earnings per share $2.86Free cash flow per share $2.24Dividend per share $0.22
2020Earnings per share $3.15Free cash flow per share $3.00Dividend per share $0.40
2021Earnings per share $6.03Free cash flow per share $-0.82Dividend per share $0.58
2022Earnings per share $9.14Free cash flow per share $1.55Dividend per share $0.59
2023Earnings per share $7.08Free cash flow per share $12.56Dividend per share $0.68
2024Earnings per share $8.51Free cash flow per share $4.20Dividend per share $0.93
2025Earnings per share $6.19Free cash flow per share $4.15Dividend per share $0.99
2017201820182019202020212022202320242025
Shares outstanding
Diluted shares
60.0M70.0M80.0M90.0M100.0M110.0M
2017Diluted shares 98.3M
2018Diluted shares 101.1M
2018
2019Diluted shares 93.8M
2020Diluted shares 94.1M
2021Diluted shares 93.6M
2022Diluted shares 89.3M
2023Diluted shares 83.4M
2024Diluted shares 77.0M
2025Diluted shares 69.3M
2017201820182019202020212022202320242025
How strong is the balance sheet?
Debt is not bad in itself; debt the business cannot service in a bad year is. Net debt is debt minus cash, and below zero the company holds more cash than it owes.
Net debt ÷ EBITDA
—
Interest coverage
— operating income ÷ interest
Current ratio
— current assets ÷ current liabilities
Cash conversion cycle
—
Three classic screens of the accounts
Each asks a different question of the same statements — is it improving, does it look like a company heading for distress, do the accounts resemble ones that were manipulated. None is a verdict; each shows what moves it.
Piotroski F-score
Is the business improving? Nine yes-or-no tests, this year against last.
3of 6 tests passed
✓ProfitableReturn on assets above zeropassed
✓Cash from operationsOperating cash flow above zeropassed
✕Profitability improvedReturn on assets higher than a year beforefailed
✕Profit backed by cashOperating cash flow above net income (low accruals)failed
–Less long-term debtLong-term debt as a share of assets fell — not reportedno data
–More liquidCurrent ratio higher than a year before — not reportedno data
✓No new sharesShare count did not growpassed
–Better gross marginGross margin higher than a year before — not reportedno data
✕Sells more per assetAsset turnover higher than a year beforefailed
Where it misleads: it measures change, not level. An excellent business that stood still for a year scores low; a poor one recovering from a disaster scores high.
Altman Z''-score
Does the balance sheet look like those of companies that went bankrupt?
The accounts lack a line it needs (retained earnings, current assets or liabilities).
Beneish M-score
Do the accounts resemble those of companies that manipulated their earnings?
The accounts lack too many of the lines it needs.
Where the statements disagree
Cross-checks between the income statement, the balance sheet and the cash flow for the latest year, each with the benign reading and the worrying one.
Reported profit comfortably exceeds the cash generated (429M against 336M).
Benign
Growth consuming working capital, or the seasonality of the year-end.
Worrying
Profit held up by accounting entries that do not turn into money.
What is it worth, under which assumptions?
A company is worth the cash it will generate, brought back to today. This model projects revenue with growth that fades over the years, applies a free cash flow margin, and discounts the result at the cost of capital. Every assumption says where it came from, and all of them can be changed.
The SEC accounts lack the lines needed for revenue, free cash flow or the share count, so there is no DCF for this company.
What it has filed lately
The last twelve months at the SEC, most important first: annual and quarterly reports, events, large holders and insiders.
Every Form 4 filed in the last twelve months, read line by line: 6 filings by 6 people. Open-market purchases and sales are counted apart from awards, option exercises and shares withheld for taxes.
Bought on the open market—none in the period
Sold on the open market$17.9M9 sale(s) by 4 insider(s)
Under pre-arranged plans0%of the sales followed a 10b5-1 plan set months earlier
A Form 4 says what happened, when, how many shares and at what price. It does not say why: a sale can be diversification, a tax bill or a plan fixed months earlier, and an award is pay, not a purchase. Nothing here is a reason to buy or sell anything.
Which large funds report holding it
From the Form 13F of the 28 institutions followed on this site, as of the end of their last reported quarter. A 13F is filed up to 45 days later and shows only long positions in US-listed shares.
Accounts from the company's own SEC filings; lines some companies do not report are shown as a dash rather than estimated. The risk-free rate is the 10-year US Treasury yield. A DCF is a way of making assumptions explicit, not a forecast: it states what the company would be worth if the assumptions held. The scores are screens that point where to look, not verdicts. Nothing here is a recommendation to buy or sell.
